September 2019
Government Launches P3 Infrastructure Investment

2019-09-11 3:48:35 PM


Ontario’s Minister of Infrastructure, Laurie Scott, today announced the Ministry’s annual Market Update, which confirms the Government’s plan to invest in public-private partnership (P3) infrastructure projects. Today’s investments amount to over $65 billion in civil, healthcare, and community safety infrastructure making it the province’s largest P3 investment to date.  

A total of 32 projects will receive funding and will be broken down in the following categories:

  • 13 civil (transit, subways, highways)

  • 16 healthcare

  • 3 community safety projects


Minister Scott also said that Infrastructure Ontario, the Crown agency delivering the projects, will provide stakeholders with market updates four times a year with major updates coming in the Spring and Fall.

The P3 model is one that combines the capabilities and capital of private companies for public purposes. Other jurisdictions, including Australia and the UK, have used this model to procure public infrastructure projects. As of 2015 in Canada, over 220 projects have been facilitated through this model – this includes the Highway 407 in the GTA (Greater Toronto Area).

Canada has been often called a global leader in P3s for reasons including a steady growth in the number of P3 projects, an efficient procurement process (a median time of 16-18 months), supportive political environment (in 2011, 70% of the public were in favour of the P3 model), and the strength of the public-private partner relationship.

Many scholars, however, disagree with the benefits of P3s. Such reasons include minimal substantive public consultation, more government money spent over time compared to traditional procurement methods, and reduced flexibility in policy due to contractual obligations.  

For more information, please see below:

Ontario Newsroom: Government Launches 2019 P3 Market Update

Infrastructure Ontario: Projects in Pre-Procurement

The Canadian Council for Public-Private Partnerships: Public-Private Partnerships: What the World Can Learn from Canada

Munk School at the University of Toronto: Public-Private Partnerships in Canada: Definitions and Debates

Globe and Mail: The Hidden Price of Public Private Partnerships


 


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